5. Audit ContractCl*ty of Kali
Past office Box 1997 -- Kalispell, Montana 59903-1 997
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T one 0b 8 00 4 75 7 0 Fax o6 758 7 8
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Date: March 20, 2010
To: Mayor Fisher and City Council Members
From: Amy Robertson, Finance Director
Jane Howington, City Manager
RE: Audit contract 20 l 0-2012
We have received a contract proposal for the three year audit period FY2010, FY2011 and
FY2012 from our current auditors Denning, Downey & Associates, P. C., CPA's. This
contract is a standard audit contract provided by the State Department of Administration.
The firm is on the State's list of qualified governmental auditors and their offices are in the
City of Kalispell. Bob Denning and Kim Downey were auditors for the State at the time the
state privatized the audit function. At that time they set up their own firm here in Kalispell.
They audit cities, counties and school districts across the state and employ about 15 people.
I've included the Firm Profile for your inspection.
Our current audit contract is $25,825. The new audit contract will freeze the cost at the
current amount for all three years. The audit costs are charged out to the various funds.
This price seems most reasonable considering that these audits will include the federal
requirements for the ARRA grants — stimulus funds and compliance with new GASB
pronouncements. This will be an A- 133 Federal Audit. I am happy to answer any questions
you might have.
LOCAL GOVERNMENT SERVICES BUREAU
THIS CONTRACT is made this
STANDARD A[TDIT CONTRACT
16th
day of Februa ._.._. 2010 , by and between
Denning, Downey &Associates, CPA's P.C.
(Certified or Licensed Public Accountant)
hereinafter referred to as the "Contractor"
Citv of Kalispell
(Governmental Entity)
hereinafter referred to as the "Entity", and the Montana Department of Administration, Focal Government
Services Bureau, hereinafter referred to as the "State`, acting under the authority of Title 2, Chapter 7, Part 5, of
the Montana Code Annotated. It is hereby agreed that:
I. This contract is not effective with respect to any party until it is approved and signed by the State, as
required by Section 2-7-506(3), MICA. The Contractor may not begin any audit work until the State
gives this approval. If the Contractor begins work before the State has approved the contract and the State
subsequently does not approve the contract, the Contractor is not entitled to receive any compensation for the
work performed.
2. The audit period or periods covered by this contract begins
July 1 , 2009 and ends June 3 0 , 2012
a. In consideration of the faithful performance of this contract, the Entity will pay the Contractor for the
audit work on the basis of time and necessary out-of-pocket expenses, which will not exceed:
$25282 for initial (or sole) audit covering 07/ Ol/ 09
$ 25,825 for subsequent audit covering 07 / Ol / 10
$ 25,825 for subsequent audit covering 07 / 01 / 11
to 06130 110.
to 06130 1 11 .
to 06130 1 12 .
The fees are set out in detail in Appendices A, B & C, as applicable, which are attached hereto and by
this reference made a part hereof
b. where the cost of any subsequent audit is not agreed upon at the time this contract is executed, the cost
will be negotiated by the Contractor and the Entity. The results of this negotiation will be set forth in
the Appendices and made a part of this contract. The Contractor will provide the State and the Entity
with a copy of the appropriate Appendices.
C. The total cost of the Contract Audit does not include the cost of additional work that may be required in
the event the Contractor discovers a defalcation or material irregularity. Any change in the scope of the
audit services to be provided under this contract requires a contract amendment.
PORMISAC01 Page 1 of 12 3147
2. continued:
d. The Contractor may submit interim bills to the Entity each month, based upon the estimated percentage
of completion of the contract. The Entity may retain 10 percent of each of these estimates until the
Contractor has delivered the final audit report, at which time the Entity will release the amount retained.
3. The Contractor will conduct a financial statement audit of the Entity:
a. The audit will be made in accordance with generally accepted auditing standards adopted by the
American Institute of Certified Public Accountants and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
The objective of the audit is the expression of an opinion by the Contractor on the financial statements of
the Entity. The Contractor will obtain reasonable rather than absolute assurance about whether the
financial statements are free of material misstatement, whether caused by error or fraud. Accordingly, a
material misstatement may remain undetected. Also, the audit will not be designed to detect error or
fraud that is immaterial to the financial statements. If, for any reason, the Contractor is unable to
complete the audit or is unable to form or has not formed an opinion, the Contractor may decline to
express an opinion or decline to issue a report as a result of the engagement.
b. The audit will include tests of internal control over financial reporting, but will not be designed to
provide an opinion on internal control or to identify reportable conditions (or significant deficiencies,
depending on the terminology appropriate to the professional standards in effect for the year(s) being
audited). The Contractor, however, will be responsible for making the Entity aware, in writing, of any
reportable conditions (or significant deficiencies) that come to the Contractor's attention.
C. The audit will include tests of compliance and other matters as required by Government ,Auditing
Standards, but will not be designed to provide an opinion on such compliance.
(1) The audit will include tests to determine whether the Entity has complied with all appropriate
statutes and regulations, as required by Section 2-7-502, MCA.
(2) The audit will include tests to determine whether the Entity has complied with the provisions of
each of its revenue bond ordinances and indenture agreements.
(3) If the audit is of a coon city or town, it will include tests to determine whether money is or has
been retained in a local charge for services fund contrary to the requirements of Section 17-2-301
through 17-2-3 03, MCA, as required by Section 17-2-3 02, MCA. The Contractor will report any
findings of noncompliance with the provisions of these statutes, regardless of materiality.
(4) If the audit is of a county or consolidated ci /county government, the audit will include tests for
compliance with state laws relating to receipts and disbursements of agency funds maintained by
the Entity, as required by Section 2-7-505, MCA.
d. when applicable, the audit will meet all requirements of the Federal Single Audit Act of 1984, as
amended by the Single Audit Act Amendments of 1996 and OMB Circular A-133.
FORM/SACOI Page 2 of 12 3107
3. continued:
e. The audit scope with regard to federal financial assistance for each fiscal year covered by this audit
contract will be as specified in Appendices A, B and C. which are attached to this contract and by this
reference made a part of this contract.
f. For purposes of determining the scope of the audit, the Entity will be considered to be the financial
reporting entity as defined by the Governmental Accounting Standards Board.
g. The audit of any school district will also include:
(1) Tests to verify the accuracy of the school district's enrollment for the fiscal year or years being
audited as reported to the Office of Public Instruction in the Fall and Spring enrollment reports.
(2) When applicable, an audit of the extracurricular funds for pupil functions.
h. If the Entity is a school district or associated cooperative, the Contractor will contact the State office of
Public Instruction and the county superintendent of schools prior to or during the audit of the Entity.
These contacts will be made to determine whether those offices are aware of potential financial or legal
compliance problems relating to the Entity that could affect the scope of the audit.
i. The Contractor will immediately notify the Entity and the State in writing of any material irregularities
it discovers. If the Entity is a school district or special education cooperative, the Contractor will also
notify the Office of Public Instruction.
j. The Contractor will provide the Entity with a copy of its most recent external peer review report and any
letter of comment, and any subsequent peer review reports and letters of comment received during the
period of the contract.
4. The Entity will be responsible for:
a. Its basic financial statements, including note disclosures;
b. Establishing and maintaining effective internal control over financial reporting;
C. Identifying and ensuring that it complies with the laws and regulations applicable to its activities;
d. Making all financial records and related information available to the Contractor;
e. The schedule of expenditures of federal awards required for audits conducted under OMB Circular A-
133;
f. Adjusting the financial statements to correct material misstatements; and
g. Providing the Contractor, at the conclusion of the audit engagement, with a letter that confirms certain
representations made during the audit, including an affirmation that the effects of any uncorrected
misstatements aggregated by the auditor during the current engagement and pertaining to the latest
period presented are immaterial, both individually and in the aggregate, to the financial statements taken
as a whole.
FORM/SAC01 Page 3 of 12 3107
5. The Entity will prepare its annual financial report or a trial balance of accounts no later than the dates
specified in Appendices A, B and C. If the Entity is unable to prepare its annual financial report or trial
balance by the date specified in the Appendices, the Entity will notify the Contractor and the State in writing.
6. The Contractor will begin the field audit work, and will deliver the audit report to the Entity and the State, in
accordance with the schedule established in Appendices A, B and C. If the Contractor cannot deliver the audit
report to the Entity and the State on the date specified in the Appendices, the Contractor will notify the Entity
and the State in writing of that fact, and the reason(s) thereof. The Contractor will then request in writing an
extension from the State. The State's approval or denial of this request will also be in writing.
7. Pursuant to Section 2-7-503(3)(a), MCA, all audits must be completed and the reports issued within one year
from the close of the last fiscal year covered by the audit. If the audit is conducted in accordance with the
provisions of OMB Circular A-133, the Contractor will also complete the audit and issue the audit report
within the time period required by that Circular, unless a longer period has been agreed to in advance by the
federal cognizant or oversight agency for audit.
8. The final audit report must contain basic financial statements and required supplementary information in
accordance with financial reporting standards in effect for the year or years being audited, as established by the
Governmental Accounting Standards Board. In addition, other supplementary information required by
provisions within this contract and by OMB Circular A-13 3 must also be included, if applicable.
a. The final audit report must also contain any other financial statements and supporting schedules and
information as agreed upon by the Entity and Contractor.
b. The financial statements presented should be in accordance ,with the financial reporting standards in
effect for the year or years being audited, as described above. If the accounting records or other
circumstances will not permit financial statements to comply with these requirements, the Contractor
will notify the State of those conditions and describe the financial statements that will be presented. This
notification will be in writing. The applicable auditor's reports will also be modified as required.
C. If the audit is of a school district with separate elementary and high school district general funds, the
general funds will be combined as a single maj or fund. All other funds will be separately considered for
major fund criteria.
d. If the audit is a biennial audit covering two years, the Contractor will present complete financial
statements as specified above for each year covered by the audit. The two years must, however, be
presented under one audit report cover, and opined upon in one Independent Auditor's Report.
9. All audit reports will contain the following auditor's reports, which must comply with applicable professional
standards in effect for the fiscal year or years being audited:
a. An independent auditor's report on the financial statements of the Entity.
b. A report on internal control over financial reporting and on compliance and other matters based on an
audit of financial statements performed in accordance with Government Auditing Standards. If
applicable, this report should include information about fraud, illegal acts, significant violations of
provisions of contracts or grant agreements, and significant abuse, or indications of these acts.
FORMISA.CO I Page 4 of 12 3/0 7
9. continued:
C. A report disclosing any lack of compliance with State statutes, rules, regulations, or ordinances that
would not have a material effect on the financial statements. This report must be referred to in the report
required in 9.b. above. This report may be combined with other reports if appropriate, or the findings
may be included in a management letter. If included in a management letter, that letter must be included
as a part of, or accompanying, the audit report.
d. A report on supplemental schedules or information, including the supplemental schedule of school
district enrollment required by paragraph I La. and the supplemental schedule of school district
extracurricular fund financial activities required by paragraph l Lb., if any such schedules or information
are presented in the audit report. This report may be given in a supplemental information paragraph of
the auditor's report on the financial statements 9.a. above, or in a separate report.
e. A report disclosing the action taken by the Entity to correct any deficiencies or implement any
recommendations contained in the prior audit report. This report must be in a format that specifically
identifies, by title or summary, each deficiency or recommendation contained in the prior audit report
and the action taken by the Entity on each such deficiency or recommendation.
f. If the Contractor includes audit findings in the reports referenced in 9.b. and 9.c. above or in a
management letter, the views of entity officials and their planned corrective actions should also be
included, as required by Government Auditina Standards, if they are available at the time the Contractor
files copies of the audit report with the State. If the views and planned corrective actions are not
available at that time, the Contractor should so indicate in the reports.
10. All audit reports for single audits done in accordance with OMB Circular A-133 must also contain the
following:
a. A schedule of expenditures of federal awards.
(1) As required by OMB Circular A-133, the schedule must:
(a) List individual federal programs by federal agency. For federal programs included in a
cluster of programs, list individual federal programs within a cluster of programs.
(b) For federal awards received as a subrecipient, include the name of the pass -through entity
and identifying number assigned by the pass -through entity.
(e) Provide total federal awards expended for each individual federal program and the CFDA
number or other identifying number when the CFDA information is not available.
(d) Include notes that describe the significant accounting policies used in preparing the schedule.
(e) To the extent practical, pass -through entities should identify in the schedule the total amount
provided to subrecipients from each federal program.
FORM/SACO1 Page 5 of 12 3107
10. continued:
(f) Include, in either the schedule or a note to the schedule, the value of the federal awards
expended in the foram of non -cash assistance, the amount of insurance in effect during the
year, and loans or loan guarantees outstanding at year end. while not required, it is
preferable to present this information in the schedule.
(2) In addition, to provide information requested by State pass -through agencies for use in monitoring
subrecipients, the schedule must contain:
(a) The program or award amount;
(b) The cash balance or fund balance of the program at the beginning of the audit period;
(c) Federal receipts or revenues for the program for the audit period;
(d) other receipts or revenues for the program such as program income, matching funds, or other
receipts/ revenues for the audit period;
(e) Non-federal expenditures associated with the program, if determinable; and
(fl The cash balance or fund balance of the program at the end of the audit period.
b. A report on the schedule of expenditures of federal awards. This report may be combined with other
reports as provided by OMB Circular A-133 and professional standards. This report must comply with
applicable professional standards in effect for the fiscal year or years being audited.
C. A report on compliance with requirements applicable to each major program and on internal control over
compliance in accordance with OMB Circular A-133. where applicable, this report should refer to the
separate schedule of findings and questioned costs described in paragraph 10. d. of the contract. This
report must comply with applicable professional standards in effect for the fiscal year or years being
audited.
d. A schedule of findings and questioned costs which must include the information required by OMB
Circular A-13 3.
e. The corrective action plan required by OMB Circular A-13 3, if that plan is available at the time the
Contractor files copies of the audit report with the State. This corrective action plan may be combined
with the Entity's planned corrective actions related to findings reported in accordance with Government
Auditing Standards, as provided in paragraph 91, above.
11. School district audit reports must also include the following as supplemental information/schedules:
a. A schedule of the district's enrollment as reported to the Office of Public Instruction for the fiscal year or
years being audited. The schedule will contain the enrollment both as reported in the Pall and Spring
enrollment reports and as documented by the school district's enrollment records.
b. A detailed schedule of extracurricular fund financial activities
FORM/SAC01 Page 6 of 12 3/07
12. The final audit report must contain any material findings relative to economy, efficiency or effectiveness in
operations that are noted by the Contractor during the audit, along with the Contractor's recommendations for
improvement. The report must also contain any other recommendations or comments for improvement that
the Contractor deems pertinent.
13. The Contractor must render a single, written report for the Entity audited. The report must include, or be
accompanied by, all written reports and letters discussing findings and recommendations from the
Contractor to the Entity, including but not limited to the reports and schedules referred to in
paragraphs 9 and 10 above as well as any management letters.
14. Before submitting the final audit report, the Contractor will hold an exit review conference in which the audit
results are discussed with those charged with governance and appropriate Entity officials and employees. The
Contractor must ensure that all members of the governing body and key members of management are
notified of this exit conference. The Contractor further agrees that prior to submitting the final report, it will
not discuss the audit findings with anyone other than the Entity or the State. However, once the Contractor
delivers the final audit report the report is deemed to be a public record.
15. The Contractor and Entity will file copies of the audit report as specified below.
a. The Contractor will provide the Entity with the number of copies of the audit report specified in
Appendices A, B and C and the cost of those copies is included in the total price for the engagement as
set out in paragraph 2.a., above, and in the Appendices. The Contractor will submit one of these copies
to the attorney for the Entity.
b. Upon request by the Entity, the Contractor will provide additional copies of the audit report at a price per
copy agreed upon by the Entity and Contractor.
c. The Contractor will provide the State with four copies of each audit report at no charge. These copies
will be sent to the State at the same time the Contractor delivers the final audit report to the
Entity, and will include any management letters. A letter of transmittal will accompany the State's
copies which will advise the State as to the date of the exit conference, the date the final report was
delivered to the Entity, the date of the audit report, the actual number of hours spent by the Contractor in
the conduct of the audit, the total audit fees billed the Entity, whether the audit was conducted in
accordance with the provisions of OMB Circular A-13 3, and whether there were any findings or opinion
qualifications in the audit report, and if so whether the entity's corrective action plan or response was
included as part of or submitted with the audit report.
d. If the Entity is a school district or associated cooperative, the Contractor will provide copies of the audit
report to the office of Public Instruction, the county superintendent of schools, and the county attorney.
e. If the Entity is a city or town fire department relief association disability and pension fund, the
Contractor will provide one copy of the audit report to the city or town clerk.
f. If the audit is a single audit conducted in accordance with the provisions of OMB Circular A-133, the
Entity will provide copies of the reporting package defined in OMB Circular A-13 3 and the data
collection form to the federal clearinghouse designated by OMB. In addition, the Entity will provide
either a copy of the reporting package, or the alternative written notification as described by OMB
Circular A-13 3 to all federal, state and other granting and pass --through agencies as required by Circular
A-133.
FORM/SAC01 P Page 7 of 12 3107
16. If not included in the audit report as provided in paragraphs 91. and 10.e., within 30 days after receiving the
audit report the Entity will notify the State in writing as to what action it plans to take to correct any
deficiencies or implement any recommendations identified or contained in the audit report, as required by
Section 2-7-515, MCA, and ARM 2.4.409. This notification will also address any findings and
recommendations contained in management letters, which are considered a part of the audit report as
prescribed in paragraph 13. If the audit is a single audit conducted in accordance with OMB Circular A-
133, this corrective action plan will also meet the requirements of Circular A-13 3 and contain all information
required by that Circular.
17. If requested by the State, the attorney for the Entity will report to the State on the actions taken or the
proceedings instituted or to be instituted relating to violations of law and nonperformance of duty as required
by Section 2-7-515(4), MCA. The attorney will report to the State within 30 days after receiving the request.
18. The Contractor certifies that, as required by generally accepted government auditing standards, it and its
principals and employees are independent in all matters with respect to this engagement. The Contractor will
neither arrange for, nor accept, non -auditing work with the Entity which could in any way impair the
Contractor's independence in violation of professional standards. If required by the State, the Contractor must
document that independence has been maintained in both fact and appearance as required by professional
auditing standards.
19. The Contractor will be the prime contractor and shall be responsible, in total, for all work of any
subcontractors. The Contractor will obtain the written approval of the Entity and the State prior to
engaging correspondent Contractors, consultants, or subcontractors to provide services in connection with this
audit. Any Contractors subcontracted to perform audit work must be on the Roster of Independent
.Auditors authorized to conduct audits of Montana local governments that is maintained by the Local
Government Services Bureau. The Contractor shall be responsible to the Entity and the State for the acts and
omissions of all correspondent Contractors, consultants, subcontractors, or agents and of persons directly or
indirectly employed by such correspondent Contractors, consultants, subcontractors or agents, and for the acts
and omissions of persons employed directly by the Contractor. Further, nothing contained within this Contract
shall create any contractual relationship between any correspondent Contractor, consultant, or subcontractor
and the State.
20. The State may participate in all entrance and exit conferences between the Entity and Contractor, as well as all
major conferences dealing with audit exceptions and recommendations regarding accounting or operating
procedures, management policies, or internal control changes.
21. The Contractor will give the State and, when required by law, the Montana Legislative Audit Division, access
to the Contractor's audit programs, supporting working papers, time records, and all other documents relating
to the audit. Access to these documents will be provided at the State's offices in Helena, Montana. Access to
working papers includes the right of the State to obtain copies of working papers, as is reasonable and
necessary. The Contractor also agrees to make the audit programs and supporting working papers available to
the State for use by the State or other public accounting firms as directed by the State in future audits of the
Entity. The contractor also agrees to make the audit programs and supporting working papers available to the
cognizant or oversight agency for audit or its designee, federal agencies providing direct or indirect funding, or
the U.S. General Accounting office, if requested. Access to working papers includes the right of federal
agencies to obtain copies of working papers, as is reasonable and necessary. The Contractor will retain the
audit report, audit programs, and audit working papers for a minimum of four years from the date of the audit
report, unless the State notifies the Contractor to extend the retention period. If professional standards or other
FORM/SAC01 Page 8 of 12 3107
21. continued:
applicable laws, rules, or regulations require a longer retention period, the auditor will retain the above
materials for that specified period.
22. As provided by Section 2-7-522, MICA, the State may review the audit report submitted by the Contractor. If
the State determines that reporting requirements have not been met, it will notify the Entity and the Contractor
of the significant issues of noncompliance. The Contractor must correct the identified deficiencies within 60
days of notification.
23. The Entity and the State recognize that the Contractor is an independent public accountant, and neither the
Entity nor the State will request or require the Contractor to surrender its "independence," as this terns is
professionally understood and used concerning public accountants. It is understood by the parties to this
contract that the Contractor is an independent contractor and that neither its principals nor its employees are
employees of the State or Entity for purposes of tax, retirement system, or social security (FICA) withholding.
24. The Contractor certifies that it carries workers' Compensation for its employees and that it has either elected
Workers' Compensation or has an approved Independent Contractor's Exemption covering the Contractor
while performing work under this contract. (Montana Code Annotated, Title 39, Chapter 71) Neither the
Contractor nor its employees are employees of the State for the purposes of this paragraph.
25. The Contractor agrees to protect, defend, and save the State, its elected and appointed officials, agents, and
employees, while acting within the scope of their duties as such, harmless from and against all claims,
demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor
of the Contractor's employees or third parties on account of bodily or personal injuries, death, or damage to
property arising out of services performed or omissions of services or in any way resulting from the acts or
omission of the Contractor and/or its agents, employees, representatives, assigns, subcontractors, except the
sole negligence of the State, under this agreement.
26. The Contractor must, in performance of work under this contract, fully comply with all applicable federal,
state, or local laws, rules and regulations, Including the Montana Human Rights Act, the Civil Rights Act of
1964, the Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990, and Section 504 of
the Rehabilitation Act of 1973. Any subletting or subcontracting by the Contractor subjects subcontractors to
the same provisions. In accordance with Section 49-3 -207, MICA, the Contractor agrees that the hiring of
persons to perform the contract will be made on the basis of merit and qualifications and there will be no
discrimination based upon race, color, religion, creed, political ideas, sex, age marital status, physical or
mental disability, or national origin by the persons performing the Contract.
27. The Entity will provide the Contractor with reasonable space in which to conduct the audit, and respond
promptly to requests for information as well as for all necessary books and records. Support for clerical,
equipment, and photocopying or reproduction services shall be agreed upon by the Entity and the Contractor as
specified in Appendices A, B and C.
28. Prior to the commencement of the audit, either the Contractor or the Entity, with the consent of the State, or
the State, may cancel this contract by providing written notice to the other parties. The contract may be
canceled under this paragraph for cause. Cause includes, but is not limited to, failure of any party to comply
with the terms of this contract or with any Administrative Rule adopted by the State under the authority of
Title 2, Chapter 7, Part 5, of the Montana Code Annotated.
FORM/SAC01 Page 9 of 12 3/07
28. continued:
In addition, if both the Contractor and the Entity mutually agree to cancel this contract prior to the
commencement of the audit, regardless of whether there is cause, the State will consent to cancellation of the
contract upon written notification by the Contractor and the Entity of their agreement to cancel this contract.
The State, however, will not consent to the cancellation of an audit contract for the sole purpose of allowing
the Contractor and Entity to then enter into a new contract that extends the number of fiscal years to be audited
by the Contractor. Unless there are extenuating circumstances, the existing audit contract must be completed
first. This provision does not prohibit the cancellation of a contract for the purpose of replacing an annual
audit with a biennial audit.
29. After the audit has commenced, but before the audit report has been issued, either the Contractor or the Entity,
with the consent of the State, or the State, may cancel this contract for failure of any party to comply with the
terms of this contract or with any Administrative Rule adopted by the State under the authority of Title 2,
Chapter 7, Part 5, of the Montana Code Annotated, or for other cause. If the contract is canceled due to the
failure of the Contractor to comply, the Contractor is not entitled to the audit fee set out in this contract. If the
contract is canceled due to the failure of the Entity to comply, the Entity will pay the Contractor a pro rata
portion of the audit fee set out in this contract, based on the percentage of work completed at the time of
cancellation. In addition, if both the Contractor and the Entity mutually agree to cancel this contract without
establishing cause on the part of either party, the State will consent to cancellation of the contract upon written
notification by the Contractor and the Entity of their agreement to cancel this contract.
30. The Contractor shall not assign, transfer or subcontract any portion of the contract without the express written
consent of the Entity and the State.
31. By signing this contract, the Contractor certifies that it is in compliance with the continuing professional
education requirements and the external quality control review requirements as set out in Government
Auditing Standards, as established by the Comptroller General of the United States. The State may require the
Contractor to provide evidence that it has met the above requirements.
32. If the audit is required to meet the requirements of the Single Audit Act of 1984 as amended by the Single
Audit Act Amendments of 1996 and OMB Circular A-133, the Contractor certifies that neither it nor any of its
principals is presently debarred, suspended, proposed for department, declared ineligible, or voluntarily
excluded from performing audits by any Federal department or agency.
33. This Contract is governed by the laws of Montana. The parties agree that any litigation concerning this
Contract in which the State is named as a party must be brought in the First Judicial District in and for the
County of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees. The
parties also agree that any litigation concerning this Contract in which the State is not named as a party must
be brought in the Judicial District in and for the County in which the Entity is located, and each party shall pay
its own costs and attorney fees.
34. This contract and the attached Appendices contain the entire understanding and agreement of the parties. No
modification or amendment of this contract is valid unless it is reduced to writing, signed by the parties, and
made a part of this contract.
FORMISAC01 Page 10 of 12 3107
8
IN WITNESS WHEREOF, Contractor, Entity, and State have executed this Standard Audit Contract on the
date first above written:
Certified or Licensed Public Accountant
Denning,Downey & Associates CPA's,--P.C.
Firm Larne
Date:
Authorized Representative
Governmental Entity
City of Kalispell
Entity Name
Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
Date:
Authorized Representative
FORIVIISACOI Page 11 of 12 3/07
APPENDIX A.
Initial or Sole Audit Under This Contract
GOVERNMENTAL ENTITY (ENTITI): City of Kalispell
Telephone:
(406)758-7755
Address: Po Box 1997
(Street Address or P.D. Box)
Kalil ell , MT 59901
(City/Town) (Zip Code)
Contact Person(s):
AmyRobertson Finance Director
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR): Denning,Downey Associates CPA's P.C.
Address: P.D. Box 1957
Telephone: (Street Address or P.D. Box)
(406) 756-6879� Kalispell , MT 59903-1957
(City/Town) (.Zip Code)
Contact Person(s):
Robert K. Denning,CPA CGF CFF or Kin M. Downey, CPA CGFK CFF
1. Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
June 30 52010 (and }.
(Month & Day) (Year) (Year)
B. Date to commence audit work: December 31 3010
C. Date to submit final audit report
to Entity and State: March 31 2011
2. Time -and Price for Engagement:
FY(s) Ending June 30 , 2010 (and )
(Month & Day) (Year) (Year)
A. Estimated total hours -- 575
91.
B. Price for audit personnel $ 25,825
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement $ 25 825
The reporting entity contains the following discretely presented component units N/A
4. Date Annual Financial Report or a trial balance will be available: August 31, 2010
FORM/SAC01 Page A 1 3107
S . Number of copies of audit report Contractor will provide to Entity:
Three (3 )
6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor
as follows:
Photocopier
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal
year(s) will be as indicated below:
19 The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awardsequal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited
OR
El The audit will not be a single audit conducted in accordancewith the provisions of OMB CircularA-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount of Ederal awards of less than $500,000 during the fiscal year(sl or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
IN WITNESS WHEREOF:
Certified or Licensed Public Accountant
DenningDowne & Associates CPA's P.C.
Firm Name
Loan
Date:
Authorized Representative
Governmental Entity
Cfty of Kalispell
Entity Name
Io
Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
Date:
Authorized Representative
FOR.MISACOI Page A2 3/07
APPENDIX B
Subsequent Audit Under This Contract
GOVERNMENTAL ENTITY (ENTITY): Cily of Kalispell
Telephone:
(406)758-7755
Address: PO Box 1997
(Street Address or P.O. Box)
Kalispell , MT 59901
(City/Town) (Zip Code)
Contact Person(s):
AmyRobertson Finance Director
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR): Dennina, Downe & Associates CPA's P.C.
Address: P.O. Box 1957
Telephone: (Street Address or P.O. Box)
(406) 756.6879 Kalispell ,NIT 59903-1957
(City/Town) (Zip Code)
Contact Person(s):
Robert K. Dennin CPA CGFU CFF or Kim. M. Downey CPA CGFM CFF
I . Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
June 30 2011 (and ).
(Month & Day) (Year) (Year)
B. Date to commence audit work: December 31 2011
C. Date to submit final audit report
to Entity and State: March 31, 2012
2. Time and Price for Engagement:
FY(s) Ending June 30 , 2011 (and )
(Month & Day) (Year) (Year)
A. Estimated total hours - 575
3.
B. Price for audit personnel $ 25 825
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement $ 25 825
The reporting entity contains the following discretely presented component units: NIA
4. Date Annual Financial Report or a trial balance will be avadble: August 31, 201 ]
FORMISAC01 Page B1 3107
5. Number of copies of audit report Contractor will provide to Entity:
Three (3 )
6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor
as follows:
Photocopier
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal
year(s) will be as indicated below:
9 The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awardsequal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited
OR
El The audit will not be a single audit conducted in accordancewith the provisions of OMB CircularA-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount of fedral awards of less than $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
IN WITNESS WHEREOF:
Certified or Licensed Public Accountant
Denning,Downey &Associates CPA's P.C.
Firma Name
Authorized Representative
Governmental Entity
Ci of Kalis ell
Entity Name
I�
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
0
Authorized Representative
Date:
Date:
Date:
FORM/SAC4l Page B2 3/07
APPENDIX C
Subsequent Audit Under This Contract
GOVERNMENTAL ENTITY (ENTITY: City of Kalispell
Telephone:
L406)758-7755
Address: PO Box 1997
(Street Address or P.O. Box)
Kalispell
, MT 59901
(City/Town) (Zip Code)
Contact Person(s):
.Amy Robertson Finance Director
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR): Dennin Downe & Associates CPA's P.C.
Address: P.O. Box 1957
Telephone: (Street Address or P.O. Box)
(406.)_ 75_6-6879Kalis ell , MT 59903-1957
(City/Town) (Zip Code)
Contact Person(s):
Robert K. Denning CPA CGFM CFF or Kim M. Downey, CPA CGFM CFF
I . Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
June 30 2012 (and ).
(Month &.Day) (Year) (Year)
B . Date to commence audit work: December 31 2012
C. Date to submit final audit report
to Entity and State March 31 2013
2. Time and Price for Engagement:
FY(s) Ending June 30 , 2012 (and )
(Month & Day) (Year) (Year)
A. Estimated total hours - 575
0
B. Price for audit personnel $ 25 825
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement - 252-8.25 . The reporting entity contains the following discretely presented component units: NIA
FORM/SAC01 Page C 1 3/07
4. Date Annual Financial Report or a trial balance will be availate: August 31, 20, 2
5. Number of copies of audit report Contractor will provide to Entity:
Three 3
6. The Entity will provide clerical, equipment, and photocopyingor reproduction services to the Contractor as
follows:
Photocopier
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal Year(s)
will be as indicated below:
® The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awardsequal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited
OR
❑ The audit will not be a single audit conducted in accordance with the provisions of OMB Circular A-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount (f federal awards of less than $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
IN WITNESS WHEREOF:
Certified or Licensed Public Accountant
Dennin Downe & Associates CPA's P.C.
Firm Name
00
Authorized Representative
Governmental Entity
Citv of Kalispell
LIM
Entity Name
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
�m
Authorized Representative
Date:
Date:
Date:
FORM/SAC01 Page CZ 3/07
DENNINGDOWNEY & ASSOCIATES CPA's P.0
FIRM PROFILE
FOR THE
CITY OF KALISPELL
Submitted by:
Denning, .Downey & Associates, P.C.
Certified Public Accountants
P.G. Box 1957
Kalispell, MT 59903--1957
(406) 756-6879
November 19, 2009
Contact:
Kim M. Downey, CPA, C GFM, CFF, CITP
Robert K. Denning, CPA, CGFM, CFF, C1TP
Denning, owe Also dates P. C.
y
CERTIFIED PUBLIC ACCO UNTANTS
P.O. Box 1957 Kalispell, NIA"' 59903-1957
(406) 75 6- 68 79 a FAX (406) 257-7879 ■ .- Mail dda@ddaudit. com
a -
Kim M. Downey, CPA, CGF ,, CFF, CITP Robert K: Denning, CPA, CCFM, CFF, CITP
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3
Denning, .down Associates, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
R 0. Box 1957 Kalispell, AdT 59903-1957
(406) 756 6879 ,, FAX (406) 257-7879 • E Mail dda@ddaudit.com
Kim M Downey, CPA, CGFM,, CFF, CITP Robert K Denning, CPA, CGFM, CFF, CITP
November I9, 2009
City of Kalispell
Mayor and City Council
Attn: Array Robertson, Finance Officer
PO Box 1997
Kalispell, MT 59901
Dear Ms. Robertson:
We are pleased to submit our firm profile. The enclosed profile should answer most if not all
questions regarding the firms experience and qualifications. If you have any questions or concerns
please don't hesitate to call.
V.ery,truly_�ours,
r
f
Robert K. Denning, CPA, CGFM, CFF, CITP
Company Profile, Staff Qualifications and Experience
Firm Profile:
Denning, Downey and Associates, CPA's PC started business in January 1994 with a
focus on servicing Montana local governments and school districts complex and
continually changing accounting and auditing needs. 16 years later, Montana local
r government's accounting needs still account for 75 % of our business.
We have offices located in Kalispell and Helena Montana.
A summary of the staff positions and the percentage of total firm revenues are detailed
below:
Audit Division 75% of total firm revenues
Shareholders
2
Audit Managers
I
Professional audit staff
4
Professional audit review staff
I
Paraprofessional staff
5
Support staff
2
Total audit division
15
Tax Division 5% of total firm revenues
Professional tax staff 2
Paraprofessional tax staff I
Total tax division 3
]Experience:
In the past year we audited
12 of the 56 Counties,
24 of the 91 Cities and Towns, and
1 52 of the 218 School Districts
13 other Districts and Component Units
3 of the 3 State Community Colleges
e
of the State of Montana governments that are required to have audits per the Montana
Department of Administration audit status report. Those numbers represent 24% of
f
the audited local governments in Montana. our audit staff of 14 is responsible for
auditing more Montana local governments than any other firm in the State.
-2-
Reference. The following is a partial list of our clients; please feel free to contact
any of them for a reference.
Counties
I Beaverhead County
j Broadwater County
Jefferson County
i Judith Basin County
Lake County
Liberty County
� City of Dillon
J City of Hardin
City of East Helena
City of Kalispell
City of Whitefish
City of Conrad
City of Thompson Falls
City of Cut Bank
City of Shelby
City of Boulder
Town of Stanford
Lincoln County
Madison County
Pondera County
Sanders County
Sweet Grass County
Toole County
Cities and Towns
Town of Cascade
Town of Chester
Town of Eureka
Town of Sheridan
Town of Twin Bridges
Town of Virginia City
Town of Manhattan
Town of Stevensville
Town of Hot Springs
Town of Browning
Town of Philipsburg
School Districts
Townsend School District
Sun River Valley School District
Ulm School District
Anaconda School District
West Valley School District
Deer Park School District
Fair--Mont-Egan School District
Swan River School District
Kalispell School District
Columbia Fall School District
Cayuse Prairie School District
Helena Flats School District
Kila School District
Somers School District
Bigfork School District
Whitefish School District
Evergreen School District
Olney -Bissell School District
Philipsburg School District
Havre School District
Rocky Boy School District
Montana City School District
Arlee School District
Valley View School District
Swan Lake -Salmon School District
Augusta School District
Troy School District
Libby School District
Eureka School District
Fortine School District
McCormick School District
Sunset School District
Swan Valley School District
Seeley Lake School District
whitewater School District
Stevensville School District
Victor School District
Darby School District
Lone Rock School District
Florence -Carlton School District
Thompson Falls School District
Trout Creek School District
Hot Springs School District
-3-
Other Entities
Bigfork Rural Fire District Northern Montana .point Refuse Disposal District
Evergreen No 1 Rural Fire District Flathead Special Education Cooperative
Bigfork water & Sewer District Park County Special Education Cooperative
Pablo/Lake County water & Sewer Bitterroot valley Special Education Cooperative
Pondera Regional Port Authority Sanders County Special Education Cooperative
m
Professional Certifications.
I-~
Prior to forming Denning, Downey, and Associates, CPA's, P.C., the shareholders,
Bob Denning and Kim Downey, both CPA's, Certified Government Financial
Managers (CGFM) and Certified in Financial Forensics (CFF), were local government
auditors from the Montana Department of Commerce. Together they bring a total of
more than 40 years of Montana local government expertise to each of our clients.
Because our focus is Montana local governments, we are able to provide the highest
quality, most comprehensive service in the State of Montana.
Key Personnel: Fears of Relevant Experience
.Robert K. Denning, CPA, CGFM, CFF, CITP
Bob is a 1987 graduate of Pacific Lutheran University in Tacoma, Washington. Prior
to becoming a partner with Denning, Downey & Associates, CPA's, P.C., Bob spent
four years with Hughes, Woodring, and Associates of Tacoma, Washington and over
two years with Local Government Services Bureau of the Montana State Department
of Commerce. while employed with Hughes, Woodring, and Associates, his duties
included auditing for --profit, not -for -profit, and government subsidized entities,
compilations, reviews, management advisory services, and tax preparation. During his
years with Local Government Services, Bob was a senior auditor and served as in -
charge auditor of many local government audits. He has performed seminars on
GASB 14, 18, 31, and 34. Bob is a member of the Montana Society of CPA's, the
Washington society of CPA's, the AICPA, the Association of Government
Accountants (AGA), is a Certified Government Financial Manager, (CGFM), is a
Certified in Financial Forensics (CFF) and is a Certified Information Technology
Professional (CITP).
Governmental Accounting Experience: Bob has amassed in excess of 40,000 hours
of governmental audit experience over the past 21 years.
.dim M. Downey, CPA, CGFM, CFF, CITP
Kim is a 1988 graduate of the University of Montana. She has twenty years of audit
experience. Kim was a senior auditor, and served as in -charge auditor of many local
govennment audits while previously employed by the Montana Department of
Commerce, Local Government Services Division. She is a member of the Montana
Society of CPA's, the Washington Society of CPA's, past president and member of the
Governmental Accounting, Auditing, Financial Reporting Committee, the AICPA, the
Association of Government Accountants (AGA), is a Certified Government Financial
Manager (CGFM) is a Certified in Financial Forensics (CFF) and is a Certified
Information Technology Professional (CITP).
Governmental Accounting Experience: Kim has amassed in excess of 40,000 hours
of governmental audit experience over the past 20 years.
Tomas Hayes CPA
Prior to corning to work for Denning, Downey & Associates, CPAs, P.C. Torn was
employed by the State of Montana, Department of Administration (DOA). Torn spent
the last 18 years with the DOA as an Audit Quality Control Reviewer. He is a member
of the Montana Society of CPA's and the AICPA.
Governmental Accounting Experience: Torn has over 36,000 hours of government
accounting experience.
_5_
Methodo�o
rwi..w�rrrr�r.�yr�in
Independence: we require that all professional staff members be familiar with, and
adhere to, the independence rules, regulations, interpretations, and rulings of the
AICPA, the State of Montana Board of Public Accountants, and the U.S. General
Accounting office. Each member of our staff is independent of your entity, and each
individual assigned to the audit will sign an independence representation for the
engagement.
Conflict of interest:. Denning, Downey & Associates CPA's PC is aware of and
complies with the independence rules of the AICPA, State Board of Accountancy and
the U.S. General .Accounting office regarding possible conflicts of interest.
Strengths: The strength of our firm lies in our overall auditing expertise. Individually
and collectively we have a strong understanding of internal control, both conceptually
and the practical aspects; of audit procedures and techniques; of federal program audit
requirements; and of state legal compliance requirements. we have a thorough audit
review process starting with the assignment of an owner as "In -Charge" of every
client. The "In -Charge" ensures that all appropriate audit procedures are performed,
the work is complete, and all conclusions are proper. Upon completion of the field
work, an overall audit review and technical review of the audit report is performed by
our in-house "audit reviewer." The audit reviewer is responsible for informing all
audit staff of potential deficiencies in the work performed.
Audit Philosophy: our firm is committed to conducting audits of the highest quality
in the most efficient and effective manner possible. Efficiency and effectiveness is
gained through extensive experience with similar entities and an organized planning
process specifically designed to each individual audit. we are committed toprovidiniz
technical assistance on an on- oin basis. Although we define and utilize the concept
of materiality in conducting our audits, we also firmly believe that the internal control
work should include all cash collection areas, regardless of the amount collected and
some testing should be performed in these areas. Denning, Downey & Associates,
CPAs P.C.'s philosophy that audits should be conducted in a friendl hel ful but
com letel ob�ective and rofessional planner has helped us to establish an excellent
reputation in our field of expertise.
Relate and Interact: we will establish a professional, friendly, and courteous
relationship with your administration and employees. Because of our many years of
experience and individual personalities, we will conduct the audit with the least
disruption possible to your employees. You will be kept informed on the audit progress
and timely informed on any problem or potential problem areas of the audit. All audit
f ndin s will be reviewed and ex lained to the a ro riate individuals.
Communication: It is our philosophy to communicate fully with appropriate client
personnel at the proper time as the audit progresses. we encourage full discussion of
sensitive and complex issues in order to resolve all audit issues. The findings and
recommendations, if any, that may be included in the various auditors' reports,
including the management letter, will be constructive in nature, intended to be helpful,
and informative.
f
Strategy for the Future: The base of our practice is, and will continue to be, in
auditing and consulting of Montana local governments. we keep on top of emerging
local government and auditing issues by subscribing to the appropriate reference
material and by maintaining a complete library. In the past three years we have kept
our clients current by providing annual update seminars.
Staff training and Continuing Professional Education (CPE): Denning, Downey
& Associates CPA's PC is committed to providing training for all staff in order to
maintain the highest quality of audit possible.
Governmental Auditing Standards requires all staff to have at least 24 hours of CPE
related to government accounting every two years.
Our firm requires that all professional staff have at least 80 hours of governmental
CPE every two years. In addition we require that all non --professional staff have at
a
least 24 hours of governmental CPE annually.
A complete listing of courses taken by the shareholders of the firm is available upon
request.
GASB #34 to 456:
Since 1999, the GASB has been quite busy issuing 23 additional statements. we keep
current on all the new requirements and will provide technical advice on topics that
affect you. Annually we present a GASB update which is available to all of our
clients.
Results of Peer Review:
Our most recent peer review was completed in August, 2007 and received an
unqualified opinion. A copy of the opinion is provided in this proposal. The Finn has
never been the object of an-v disciplinary action.
Contact information:
Robert K Denning, CPA CGFM, CFF, CITP is the shareholder assigned to your
engagement. He will be your main contact, feel free to contact hire or Kim Downey
CPA, CGFM, CFF, CITP shareholder at IgLny time.
Bob's Phone Numbers:
Office 756-6879 Ext. 101
Cell 253-6208
Home 756-8095
Kim's Phone Numbers:
Office 756-6879 Ext. 102
Cell 253-6210
J. � Magnuson, mcfiugh
Company, P.A.
Cffis'and Consultants
August 29, 2007
Kim M. Downey, CPA
Denning, Downey & Associates, P.C.
1740 US Hwy 93 south, Suite 1.01
Kalispell, MT 59901
We have' reviewed the system of - quality control - for the accounting and auditing practice of
Denning, Downey & Associates, P.C. (the firm) in effect for the year ended May 31, 2007. A
system- of quality control encompasses- the firm's organizational structure, the policies -adopted
1121 •Mullan A -venue and procedures established to provide. it with reason�bie assurance of conforming yYifh
professional standards. The elements of quality. control are described in the Statements on
Quality Control-- Standards issued by -the American Institute of CPAs. (AICPA) _ The" firm is
resppnsib[e for designing a system of quality control -and complying -with it to provide thee- firrn
Po Box 13 79 reasonable assurance of Gonfarmirig with. professional standards in -all material respects. Our
responsibility. is to.express. an opinion on the design- of the system of quality control and the
fitm's cornpliarice with its. system of quality control based on our review.
Coeur d'Alene, ID Our review was conducted in accordance with standards ei established by the Peer Rviowi Board
of the AICPA. During our review, we read required representations from the firm, interview.Lm'd
firm personnel and obtained an understanding of -the nature: of the firm's accounting and
auditing practice, and the design of the firm's system cif 'quality contrdl sufficient -to assess the
risks. implicit in . its practice. Based on our assessments, we selected engagements arid.
s3sxG-��� administrative files, to test for conformity with professional standards and* compliance with the
firm's system of quality control. The engagements selected represented a reason4ble cross-
section of the firm's accounting" -and auditing- practice 'with emphasis on higher --risk
engagements. The engagements selected included- among others, engagements performed
2087765-9500 under Gorrernment Auditing Standards. Prior to' conchiding the -review, we reassessed- the
adequacy -of the scope of -the peer review procedures and met with firm management to discuss
the results of -our review. We believe that the procedures we performed: provide a reasonable
basis far our opin ion .
800-735-1.315
In performing our review; we, obtained an understanding of the system of quality control for the
= firm's accounting and -auditing practice. In .addition, We tested compliance with the firm's quality
control policies and procedures .to the extent we considered appropriate. These tests covered
' the application of the firm
policies and procedures on selected engagement. Our -review was
fax: 2os-GG7-974 based on selected -tests, therefore, it -would not necessarily detect all weaknesses in the system
of 'quality control or all instances of noncompliance with- it. There are inherent limitations in the
effectiveness of any system of quality control and; therefore, noncomplian- ce with the system of
quality control 'may occur -'and not be detected. Projection of any evaluation of a system of
r7asCarnmcocpa--cohi quality control to future periods is subjeQt' to the risk that .the system of quality control may
become inadequate because of changes in conditions, or because the degree of compliance
with the policies or procedures may Bete ho rate:
I
int on Us ro Care. In our opinion, the system of quality control for the accounting and auditing practice of Denning,
Downey & Associates, P.C. in effect for the year ended May 31, 2007, .has been designed to
meet the requirements of the quality control standards for an accounting and auditing practice
established by the- AIGPA and was complied with during the year then ended to provide the firm
} with reasonable assurance of -conforming with professional standards.
i
MAGNUSbN, MCHUGH & CO., P.A.